7-Eleven operates more than 13,000 stores across the United States and Canada. The company plans to shut down 444 “underperforming stores” as part of improving efficiency and managing cost, according to an Oct. 10 financial forecast presentation from the firm. The closures represent more than 3 percent of the company’s U.S. and Canadian stores. This is expected to generate approximately $30 million in operating income benefit for the retail chain this year.
7-Eleven is looking to boost capital efficiency and ensure sustained business growth in North America given the “tough consumer spending environment, particularly among lower-and middle-income earners,” it said in an Oct. 10 statement.
Challenging employment conditions, high interest rates, and inflationary pressures have led to a decline in labor incomes, according to the company.
The firm credited the robustness of the North American economy to consumption by high-income earners, noting that middle- and lower-income groups have taken a “more prudent approach” in this regard.
“In the six months ended August 31, 2024, merchandise sales at existing stores in the U.S. decreased year-on-year in U.S. dollars,” it stated, noting that traffic also declined. […]
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